As per report from sources the Reserve Bank of India has issued an order prevents banks and all other financial entities in India from dealing with cryptocurrencies, whether it is individuals or companies holding such digital assets and trying to park them with these institutions. Meanwhile these include non-banking financial companies or e-wallet operators; practically every outfit that comes under the ambit of RBI’s control will have to comply with this new order.
According to sources RBI has also disclosed that it is planning to launch a digital currency of its own and for this, it has set up a study group comprising experts drawn from different departments within the Reserve Bank and the group has been asked to submit its report by June.
RBI stated that consumer protection, market integrity and money laundering
are some of the major concerns while dealing with this highly volatile digital
asset and the step taken by RBI is also consistent with the position taken by
many Central Banks and governments across Asia and elsewhere. Accordingly RBI’s
statement allows for a transition arrangement, in which the existing
relationships of any kind these banks and the other institutions may have, with
those dealing in cryptocurrencies will have to be terminated.
